- “Lots of place in debt debt of the overload of RS2.83.”
- The Minister says that no burden on consumers will not add any burden.
- Govt in talks with banks to borrow RS1200 billion, he says.
On Sunday, Federal Minister of Energy Awais Ahmad Khan Leghari said that no new supplement would be imposed on electricity consumers to settle the circular debt of 2400 billion rupees.
His remarks one day occurred after reports emerged on certain sections of local media, claiming that the government, during technical talks with the International Monetary Fund (IMF), proposed approximately RS2.83 per additional unit on electricity electricity for the next five years to conclude the circular debt of the power division.
Speaking on Geo News Naya Pakistan program, the Minister of Energy said that there was “a lot of space in an additional RS2.83” service supplement that the government is currently invoking electricity consumers.
He said that the electricity division had improved its effectiveness, adding that they “felt safe” and that the economic amounts due to interest rates. “We will get rid of the circular debt in the next five to six years.”
“We took the IMF on board (on this subject). These are our development partners.
The Minister has categorically announced: “We will not add any charge to our consumers.”
He criticized the former PTI government for adding 1,580 billion rupees in the circular debt during his mandate and said that the previous PDM and the current governments had maintained the almost stable “circular” debt.
Answering a question, the minister said the total circular debt was currently at around RS2400 billion, adding that some part of the loan was to be paid to government factories.
“We do not take banks for such loans,” he said, adding that the government had saved 460 billion rupees after a discussion with the PPI under revised agreements and provides relief to the people.
The minister said they were negotiating with commercial banks to borrow RS1200 billion to settle the remaining circular debt.
When asked if the IMF had rejected a proposal to reduce taxes on electricity bills, the Minister qualified their meeting as a “very well” delegation of the world lender, saying that their development partners had not rejected any proposal.
To another question, the minister said that the government would make no amendments to the existing agreements linked to the solar move.